QUESTION 5 Prepare the Statement of Financial Position 13 at 31 December 2016. The noted to the financial statements are not required. Show working in the spaces provided. (20 Marka) INFORMATION The information given below was extracted from the accounting records of Merwent Lad on 31 December 2020 (the end of the financial year) MEREWENT LTD PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2020 Debit (R) Credit (R) Balance Sheet Accounts Section Ordinary share capital 320 000 Retained earnings 40 000 540 000 Land and buildings 130 000 Vehicles (cos 100 000 Equipment cost Acumulated depreciation on vehicles 50 000 Accumulated depreciation on equipment 40 000 Debentures (10% pa) 280 000 Debtors control 36 000 Provision for bad debts 2 000 Bank 23 000 Creditors control 33 000 South African Revenue Services Company tax) 29 000 Nominal accounts section Sales 757 000 Opening inventory 110 000 Purchases 811000 Pacheseren 33 000 Cantage on purchase 8000 Malinance 7000 Municipal rates 5000 Cariage on sales 10000 Wages and sales 80 000 Stationery 1000 Baddebits 2000 7000 Sundry expenses 3000 urance 7000 Telephone 3000 Water and electricity 48000 Adjustments and scditional information 1 Physical stocktaking on 28 February 31 December 2020 revealed the folowing inventories 1.1 Trading inventory, R90 000 12 Stationery, R200 2 A notice from the municipality reflected an amount of R200 that was paid tar municipal rates for the next financial year 3 Depreciation must be provided for as follows: 3.1 On vehicles, R16 000 3.2 A debtor, who owed R1 000, was declared insolvent. Received R400 of the amount owing from his insolvent estate. The balance of his account must now be written oll. No enties were made for these transactions 5. The insurance total includes a premium of R100 that was paid for January 2021 6 An amount of R2 000 was due to be paid for audit toes on 02 January 2021 7 The provision for bad debts must be increased to R2 200 8 Provide for interest on debentures that is yet to be paid, R26 000, 9 The company tax for the year amounted to R33 000. The profit after tax AFTER taking the above information into account was R7S 700 10 The final dividend declared on 31 December 2020 amounted to R50 000 QUESTION 5 Prepare the Statement of Financial Position 13 at 31 December 2016. The noted to the financial statements are not required. Show working in the spaces provided. (20 Marka) INFORMATION The information given below was extracted from the accounting records of Merwent Lad on 31 December 2020 (the end of the financial year) MEREWENT LTD PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2020 Debit (R) Credit (R) Balance Sheet Accounts Section Ordinary share capital 320 000 Retained earnings 40 000 540 000 Land and buildings 130 000 Vehicles (cos 100 000 Equipment cost Acumulated depreciation on vehicles 50 000 Accumulated depreciation on equipment 40 000 Debentures (10% pa) 280 000 Debtors control 36 000 Provision for bad debts 2 000 Bank 23 000 Creditors control 33 000 South African Revenue Services Company tax) 29 000 Nominal accounts section Sales 757 000 Opening inventory 110 000 Purchases 811000 Pacheseren 33 000 Cantage on purchase 8000 Malinance 7000 Municipal rates 5000 Cariage on sales 10000 Wages and sales 80 000 Stationery 1000 Baddebits 2000 7000 Sundry expenses 3000 urance 7000 Telephone 3000 Water and electricity 48000 Adjustments and scditional information 1 Physical stocktaking on 28 February 31 December 2020 revealed the folowing inventories 1.1 Trading inventory, R90 000 12 Stationery, R200 2 A notice from the municipality reflected an amount of R200 that was paid tar municipal rates for the next financial year 3 Depreciation must be provided for as follows: 3.1 On vehicles, R16 000 3.2 A debtor, who owed R1 000, was declared insolvent. Received R400 of the amount owing from his insolvent estate. The balance of his account must now be written oll. No enties were made for these transactions 5. The insurance total includes a premium of R100 that was paid for January 2021 6 An amount of R2 000 was due to be paid for audit toes on 02 January 2021 7 The provision for bad debts must be increased to R2 200 8 Provide for interest on debentures that is yet to be paid, R26 000, 9 The company tax for the year amounted to R33 000. The profit after tax AFTER taking the above information into account was R7S 700 10 The final dividend declared on 31 December 2020 amounted to R50 000